TheCable

The Bank of Industry says it has implemented measures to ensure that its customers receive support to cushion the economic impact of the coronavirus on their businesses.

In a statement on Monday, the bank said it has complied with a March 29 directive from President Muhammadu Buhari on a three-month moratorium for loans given by government-owned financial institutions.

In addition, the bank said customers who would need more than three months moratorium have been advised to apply for an extension which can be up to one year (12 months).

The development finance institution also listed other measures implemented to support customers to include “reduction of the interest rates on all BOI-funded projects from 10% to 8% pa, with effect from April 1.”

It said it also negotiated interest rate reduction on some of the funds managed on behalf of other partners providing an example of an interest rate deduction from 8% per annum to 6% per annum on the Nigerian content intervention fund (NCIF) which is managed on behalf of NCDMB.

Intervention funds granted by the Central Bank of Nigeria (CBN) were also said to have been “covered by the CBN’s palliative measures, which include moratorium extension and interest rate reduction to 5% pa”.

“The bank has written to all the managing directors and chief risk officers of its partnering commercial banks, officially notifying them of the bank’s position on these initiatives,” the statement read.

“Also, in the bank’s bid to support the government and private sector initiative to fight COVID-19, the bank donated N700 million to both the CACOVID Fund, as well as the Lagos state government and the FCT ministerial committee on COVID-19.”

The bank assured customers of its commitment to its goal of supporting economic development by providing financial and business support services to enterprises.

TheCable had earlier reported complaints by some customers of non-compliance by the development finance institution.